Overview

Non-Governmental Organizations (NGOs) intending to operate in Nepal must adhere to a structured, multi-step registration process involving local, district, and national authorities. Based on the current legal framework—specifically the Association Registration Act, 2034 (1977) and the Social Welfare Act, 2049 (1992)—the following outlines the typical timeline, required documentation, and applicable fees.

Governing Legal Framework:

Three main legal instruments regulate the establishment and operation of NGOs in Nepal:

• The Association Registration Act, 2034 (1977): It provides the primary legal basis for registering an NGO as a legal entity.

• The Social Welfare Act, 2049 (1992): It governs the affiliation with the Social Welfare Council (SWC), which is mandatory for receiving foreign aid or conducting nationwide projects.

• Social Welfare Council Guidelines: Issued by the SWC to regulate coordination and project approval.

Step-by-Step Registration Procedure

1. Formation of an Ad-Hoc Committee & Recommendation from Ward Office

The founding members must first form an ad-hoc committee. A letter of support (recommendation) must be obtained from the relevant Ward Office where the NGO’s office is situated.

2. Recommendation from the District Coordination Committee (DCC)

Following the ward recommendation, the application moves to the DCC (formerly DDC) of the respective district. The DCC evaluates whether the NGO’s objectives align with district development priorities.

3. Registration at the District Administration Office (DAO)

This is the formal registration step. Under the Association Registration Act, the DAO (headed by the Chief District Officer) reviews the constitution and documents to issue the official Registration Certificate. This certificate legally establishes the NGO.

4. PAN Registration at the Inland Revenue Department (IRD)

Once the NGO is registered with the DAO, it must apply for a Permanent Account Number (PAN) at the IRD to remain tax-compliant, issue donations receipts, and open bank accounts.

5. Affiliation with the Social Welfare Council (SWC)

The final step is obtaining affiliation from the SWC. While DAO registration is mandatory for existence, SWC affiliation is mandatory for NGOs that intend to receive foreign funding or collaborate with international partners.

6. Local Level Registration (Post-Registration)

Some municipalities require a final notification or registration at the local ward office after completing the above steps.

Minimum Membership Requirement

As per the Association Registration Act, 2034, a minimum of seven (7) members holding Nepali citizenship is required to form an NGO.

• Board Composition: Typically includes a President, Vice-President, Secretary, Treasurer, and Members.

• Gender Representation: There is a mandatory requirement of at least 33% women representation in the executive committee.

Timeframe for Completion

Once all documents are properly submitted without discrepancy, the entire process (DAO registration + SWC affiliation) typically takes 1 to 2 months.

• DAO Registration: 15 to 20 working days.

• SWC Affiliation: 2 to 4 weeks following DAO registration.

Government Fees and Charges

The approximate governmental fees are estimated at NPR 6,000 to 7,000, subject to variation by district and local level.

Required Documents

Applicants must submit the following documents to the respective authorities (DAO and SWC):

1. Constitutional Documents:

• Draft Constitution (Bidhan): Must include the name, address, objectives, membership criteria, executive committee structure, meeting procedures, fund management rules, and dissolution clauses as per the Act.

• Minutes of the Ad-Hoc Committee Meeting: Recording the decision to form the NGO and approval of the constitution.

2. Member-Specific Documents:

• Citizenship Certificates: Certified (notarized) copies of citizenship certificates of all executive members (minimum 7).

• Character Certificate (Police Report): A recent character report issued by the Nepal Police from the respective district of each member.

• Passport-sized Photographs: Recent photos of all board members.

3. Office Address Proof:

• Rent Agreement: A rental contract between the NGO and the property owner.

• Ownership Proof: Copy of the house owner’s citizenship certificate.

• Advance Rent Receipt: Receipt showing payment of 3 months' rent in advance is often required.

Post-Registration Compliance (Renewal)

Once registered, NGOs must adhere to annual compliance requirements:

• DAO Renewal: The NGO must be renewed annually at the District Administration Office by submitting progress reports and paying a renewal fee (approx. NPR 500).

• SWC Renewal: Affiliation with the SWC must be renewed every 3 years, along with audited financial statements.

• Tax Returns: Annual filing of tax returns with the Inland Revenue Department is required even if exempt.

Disclaimer:

This information is provided for general guidance and legal education purposes only based on the laws of Nepal (Association Registration Act 2034, Social Welfare Act 2049) and does not constitute legal advice. Procedures, fees, and legal interpretations may change via amendments or circulars. You are strongly advised to consult a qualified legal professional in Nepal or the relevant District Administration Office before taking action.